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Note 5 - Other Real Estate Owned (OREO)
 9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Real Estate Owned [Text Block]

Note 5. Other Real Estate Owned (OREO)

 

Changes in the balance for OREO during the nine months ended September 30, 2021 and the year ended December 31, 2020 are as follows (in thousands):

 

  

Nine Months Ended

  

Year Ended

 
  

September 30, 2021

  

December 31, 2020

 

Balance at the beginning of year, gross

 $—  $— 

Transfers in

  130   — 

Acquired in merger

  2,137   — 

Sales proceeds

  (288)  — 

Gain on disposition

  8   — 

Balance at the end of period, gross

 $1,987  $— 

Less: valuation allowance

  (139)  — 

Balance at the end of period, net

 $1,848  $— 

 

There were no residential real estate properties included in the ending OREO balances at September 30, 2021 and December 31, 2020. The Bank did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2021.

 

The Company acquired $2.1 million of OREO in the acquisition of Fincastle including $1.8 million of real estate and buildings formerly used as bank premises by Fincastle.  The Company will not place these properties into service as bank premises and has designated them as held for sale.  Net expenses applicable to OREO, other than the provision for losses, were $21 thousand for the nine months ended September 30, 2021.  The Bank did not have any expenses applicable to OREO for the nine months ended September 30, 2020.  The Bank did not have any expenses applicable to OREO for the year ended December 31, 2020.